Common Small business bookkeeping mistakes

As a bookkeeper that works with small businesses, there are many mistakes and issues that my clients have faced that made their finances harder and more stressful to maintain, these are three of the most common mistakes small businesses make when taking care of their books.

• Mixing personal and business finances

As a business owner it is crucial to keep your finances separate from your business finances. Using one account for personal and business expenses can cause improper tax filing, inaccurate financial reports, and unnecessary stress when bookkeeping.

• Not reconciling accounts

Reconciling accounts is important for ensuring your business’s financial records are accurate. Not reconciling accounts allows the potential for fraud and unrecognized expenses.

• Not tracking expenses

To ensure that your business gets all available tax deductions and accurate financial reports, tracking your expenses is a suitable place to start.

Having a thorough and organized bookkeeping process is important for a successful business. For more information or assistance with your bookkeeping, contact Bella Bookkeeping today.

-Isabella Griffin